Efficiency of Operations in Container Terminals: A Frontier Method

Abstract

Nowadays transporting cargo via containers are significant for every shipment. The movement of container involves multi modes to reach destination. In Malaysia, efficient transport networking systems are catalyst for container terminal in providing excellent services to their client. The paper focuses on the metamorphosis of the terminal efficiency and container movements at 6 major container terminals in Peninsular Malaysia. The aim is to analyse the efficiency of container terminals that contributes significant economic development in Peninsular Malaysia. Non parametric approach under frontier method is used to analyse panel data from 2003 to 2010 in relation with container terminal equipments and throughput. Result of the analysis shows no significant relationship between container terminal size and efficiency. Thus, efficiency is determined from allocation of resources efficiently by terminal operators and not by size of terminals.

Keywords: Technical efficiency, Container terminal, Data envelopment analysis, Terminal productivity, Transportation